The (un)Risky Business of Appraisals…

You’ve got lots of decisions to make when buying a home. Among them: When to order your appraisal.

A homebuyer’s dilemma

The earlier that you order your appraisal, the faster your lender will be able to move your loan along, get closed and get you moving into your new home. But, ordering the appraisal before you’ve completed home inspections (and any ensuing negotiations) creates the possibility that you’ll wind up paying for an appraisal on a home you decide not to purchase.

Depending on the type of property you are buying, that could be a $700, $900, or an even larger waste of money.

With a healthy chunk of cash on the line, it’s tempting to get your inspections buttoned up before turning the appraiser loose.

Finding a competitive edge

Even if you’re not in a hurry, you still may find a quick closing necessary or beneficial. Why? To please your seller.

To get past ‘go,’ and purchase your dream home, you’ve got to get a seller to say ‘yes’ to your offer. And, in a low-inventory sellers’ market, sellers often push for a speedy closing.

To a seller, a faster closing means less risk. Closing, after-all, converts the promise of cash from a sale into cash in hand. And, for sellers who are purchasing another property, the faster a sale closes, the sooner the seller can write a stronger, non-contingent offer on their dream home.

Compete against cash

Competing against cash offers can be a challenge. Sellers favor cash offers for two reasons: 1) they can close in just a couple of weeks and 2) there is no appraisal needed. Promising to remove the appraisal contingency quickly puts you on something closer to even footing with a cash buyer.

Order that appraisal — we’ve got your back!

At Guaranteed Rate, we want to give our clients every competitive advantage we can. So this summer, we’re taking away the risk out of ordering your appraisal.

The GR Appraisal Guarantee

If you order your appraisal and then terminate the transaction based on the results of your home inspection, GR will cover the cost of the next appraisal.

So go ahead — order that appraisal. Heck, you can even write it into your offer. Promising to order the appraisal right away is a great way to make your offer stand out.

How it works

Qualifying for our appraisal guarantee is easy. This offer is valid for participating borrowers through July 31, 2018. It only applies to purchase contracts terminated as a result of the home inspection with appraisals that were scheduled before the inspection.

You must pay upfront for your appraisal to be eligible — we’ll collect a deposit from you before we order it.

Check those easy boxes, and Guaranteed Rate will issue a credit up to the cost of the original appraisal, toward the cost of the appraisal on the next transaction. The credit must be used within 12 months.

Home Purchase Experts

The Guaranteed Rate Appraisal Guarantee program is one more way we’re proving ourselves to be the Home Purchase Experts. Put us to work for you.

Call 503-799-3711 or email today (or apply online at and get pre-approved today.

Then, get out there and buy your dream home!

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.

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